Home Buyer Traffic Not So Great, but Some Positive Signs on Listings

The spring home buying season is off to a slow start, real estate agents reported in a new monthly outlook survey.

Potential buyer traffic dropped, but price expectations and listing activity both were up, according to Credit Suisse's monthly survey of 1,200 real estate agents who were asked their perceptions on traffic, inventory and prices.

Mortgage market conditions continue to impact real estate activity, as many agents reported that the threat of rising interest rates is getting potential buyers off the fence.

"People are hearing the market is better this year. Rates are still low, under 5%," reported one Realtor in Denver. "Buyers are tired of waiting. However, prices still have to be at or below what the buyers think the market is."

The traffic index reading was 37.5 in March, down from 42 in February. A reading below 50 indicates traffic levels were below agents' expectations, as buyers chose to wait for more signs of balance in the market, wrote lead analyst Daniel Oppenheim. The traffic index had increased four consecutive months, before its March decline.

"Agents continued to note the wide divide among potential buyers, with the most distressed markets finding significant investor interest, whereas buyers in other markets are still cautious and plan to wait for home prices to bottom," Oppenheim added.